Several homeowners have recently asked me about the large deficit shown in the 2026 RMCA budget that we all received in the mail. I decided that an explanation would be appropriate as to why it is not a concern at this time.
When developers create the initial budgets, they do so with a long-term plan in mind to help ensure the Association becomes self-sustaining once the developer is no longer contributing to cover Operating deficits.
As homes are built, sold, and closed, more homeowners begin paying HOA fees. In addition, our Board has been increasing the monthly HOA fees each year, moving us toward the goal of becoming financially self-sustaining by the time 75% of homes have closed.
That level of closed homes triggers what is known as Transition, when homeowners elect the majority of Board positions and the developer stops subsidizing the budget.
Operating costs rise every year—just like personal expenses. After the first few years with no HOA fee increases, I proposed annual 5% increases to ease us toward self-sufficiency. My feeling was that smaller, steady increases are preferable to holding fees flat for years and then requiring one large increase at Transition.
Once we are self-sustaining, costs will likely continue to rise. At that point, the homeowner-elected Board will determine whether to save money, decrease services, increase services, or maintain current service levels.
Even after Transition, Toll will still have more than 150 homes left to sell and close. As more homeowners begin paying dues, our revenue will continue to increase. That additional income will likely offset much of the rising costs, even as new expenses are added to support a larger community.
HOAs are not-for-profit organizations. There is no ability to make a profit—and conversely, no ability to sustain a loss. We need to be financially self-sufficient, with a small cushion for Operating overages, and with Reserves set aside each year for major repairs or replacement of significant assets.
My goal as Treasurer has been to help guide us so that when homeowners are the ones making the decisions and footing the bills, we’re on solid financial footing and in the right mindset to do so. I plan to continue along this path in the coming year and beyond.
Submitted by Bill Cirkus
November 17, 2025